New Delhi, 02 October (H.S.): Spot silver prices in the domestic bullion market witnessed a sharp decline on Thursday, with prices falling by Rs 12,700 to Rs 13,200 per kilogram in early trade. Following the steep decline, silver was trading at Rs 2,26,800 to Rs 2,32,000 per kilogram across different parts of the country.

In the Delhi bullion market, silver fell by Rs 12,900 per kilogram to trade at Rs 2,27,000 per kilogram. Similarly, in Mumbai, Ahmedabad and Kolkata, silver was trading at Rs 2,26,800 per kilogram. In Jaipur, Surat and Pune, the metal was quoted at Rs 2,27,100 per kilogram.

In Bengaluru, silver was trading at Rs 2,27,300 per kilogram, while prices in Patna and Bhubaneswar stood at Rs 2,26,900 per kilogram. Meanwhile, in Hyderabad, silver declined by Rs 13,100 per kilogram to trade at Rs 2,31,700 per kilogram.

The highest silver price in the country was recorded in Chennai, where the metal fell by Rs 13,200 per kilogram to Rs 2,32,000 per kilogram.

Market expert Mayank Mohan said tensions in West Asia have disrupted market dynamics, creating an atmosphere of uncertainty. As a result, prices of precious metals such as gold and silver, which are widely regarded as safe-haven assets, have also witnessed considerable volatility in international markets.

According to Mohan, India imports around 85 percent of its gold requirements from international markets. Similarly, the country relies on imports to meet around 80 percent of its silver demand. Consequently, fluctuations in international markets have a direct impact on prices in the Indian market as well.

Over the past week, the international price of silver has declined from $65.50 per troy ounce to $61.07 per troy ounce. This fall in international prices has also contributed to the decline in silver prices in the Indian market.

Mohan said that geopolitical tensions have currently led to a significant decline in industrial demand for silver. However, he said this situation is unlikely to persist for an extended period. Even countries involved in conflicts will eventually have to accelerate industrial activity to meet their normal requirements. In such a scenario, silver prices could once again witness a sharp upward movement.

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Hindusthan Samachar / Jun Sarkar